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The area that now constitutes New York City was inhabited by such Native American tribes as the Manahattoes and Canarsies long before the arrival of European settlers, as attested to by discoveries of arrowheads and other artifacts in areas of the city that are not occupied by buildings today, such as Inwood Hill Park and Riverside Park. European settlement began with the founding of the Dutch settlement of New Amsterdam (Nieuw Amsterdam) on the southern tip of Manhattan in 1626. In 1664, English ships captured the city without struggle, and it was renamed New York, after the Duke of York. At the end of the Second Anglo-Dutch War in 1667, in the Treaty of Breda the Dutch formally signed New York over to the English and received the colony of Suriname in return.
At the start of the American Revolutionary War, the city was the scene of important early fighting at the Battle of Brooklyn, suffered a great fire in which much of it burned, and fell into British control for the remainder of the war, not to be regained by the Americans until 1783. "Evacuation Day" was long celebrated in New York.
During the 19th century, the city population boomed by an influx of a vast number of immigrants. In 1811, the city street grid was expanded to encompass all of Manhattan with a visionary development proposal called the Commissioner's Plan. By 1835, New York City overtook Philadelphia as the largest city in the United States.
During the Civil War, the city's strong commercial ties to the South, as well as its growing immigrant population, led to a split in sympathy between the Union and Confederacy, culminating in the Draft Riots of 1863, the worst civil unrest in American history.
After the war, the rate of immigration from Europe grew steeply, and New York became the first stop for millions seeking a new and better life in the United States.
In 1898, New York City took the political form in which it exists to this day. Prior to 1898, New York City consisted of Manhattan and the Bronx, which was annexed by the city from southern Westchester County in two separate actions: the western portion in 1874, and the remaining portion in 1895. In 1898, a new municipal government, originally called Greater New York, was created by new legislation. It was divided into five boroughs. The Boroughs of Manhattan and The Bronx covered the original city and the rest of New York County. The Borough of Brooklyn consisted of the City of Brooklyn as well as several municipalities in eastern Kings County. The Borough of Queens was established in western Queens County, and covered several small cities and towns, including Long Island City, Astoria and Flushing. The Borough of Staten Island contained all of Richmond County. All municipal governments contained within the boroughs were abolished. A year later, the area of Queens County not contained within the Borough of Queens became Nassau County. In 1914, the state legislature created Bronx County, shrinking New York County so it contained only Manhattan. The five boroughs are now considered to be generally coterminous with their respective counties.
In the first half of the 20th century, the city became a world center for industry, commerce, and communication. Interborough Rapid Transit (the first subway company) began operating in 1904. The New York skyline soared in the 1930s with the building of some of the world's tallest skyscrapers.
In the decades after World War II, however, the city slid into gradual decline with the loss of population to the suburbs and the erosion of its industrial base. Like many US cities, New York suffered severe race riots in the 1960s, and by the 1970s, the city had gained a reputation for being a crime-ridden relic of history. In 1975, the city hit bottom and had to declare bankruptcy.
The 1980s saw a rebirth of Wall Street, and the city reclaimed its role at the center of the world-wide financial industry. In the 1990s, crime rates dropped drastically and the outflow of population turned around, as the city once again became the destination not only of immigrants from around the world, but of many U.S. citizens seeking to live a cosmopolitan lifestyle that only New York City can offer. In the late 1990s, the dot com boom fueled another frenzy of financial speculation that sent the economy soaring.
The September 11, 2001 attacks also struck at Washington, D.C., but New York was the city most affected, because of the attack on the World Trade Center and the thick, acrid smoke that continued to pour out of its ruins for a few months following the Twin Towers' fiery collapse. However, cleanup of Ground Zero was completed ahead of schedule, and the city has since rebounded and pushed forward new plans for the destroyed areas of the World Trade Center. The Freedom Tower, to be built on the site, is intended to be the world's highest skyscraper after its scheduled completion in 2008.